Comprehensive Appraisal Services in Northeast Ohio

Myth: Assessed value should equate to market value.
Reality: Although many states endorse the idea that assessed value should reflect market value, this is frequently not true. For instance, if a homeowner has made significant interior renovations without notifying the assessor, the assessed value may not capture these upgrades. Additionally, properties nearby might have gone years without reassessment, further skewing the comparison.

Myth: The property’s appraised value will vary depending on whether the appraisal is conducted for the buyer or the seller.
Reality: Appraisers are committed to neutrality and do not have a personal interest in the appraisal results. Their role is to deliver evaluations with independence, objectivity, and impartiality, no matter who the client is.

Myth: Market value should approximate replacement cost.
Reality: Market value reflects the price a willing buyer is prepared to pay a willing seller for a specific property, with both parties free from pressure. In contrast, replacement cost is the total amount needed to rebuild a property exactly as it is.

Myth: Appraisers rely on a formula, like price per square foot, to determine home value.
Reality: Appraisers conduct a comprehensive analysis of various factors that influence a home’s value, including its location, condition, size, proximity to amenities, and recent sale prices of similar properties.

Myth: When home prices in a thriving economy rise by a certain percentage, individual property values will increase by that same percentage.
Reality: The appreciation of a specific property must be assessed individually, taking into account data on comparable properties and other pertinent factors. This principle holds true during both prosperous and challenging economic times.

Myth: You can usually gauge a property’s value just by viewing its exterior.
Reality: The value of a property is influenced by several factors, including its location, overall condition, upgrades, amenities, and current market trends.

Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.
Reality: The appraisal is legally owned by the lender unless the lender explicitly relinquishes its rights to the document. However, consumers have the right to receive a copy of the appraisal report upon written request, as per the Equal Credit Opportunity Act.

Myth: Consumers don’t need to care about the contents of an appraisal as long as it meets their lender’s requirements.
Reality: Consumers should review their appraisal to verify its correctness and challenge the findings if necessary. The appraisal also serves as a valuable reference for the future, containing useful information such as the property’s legal and physical description, square footage, list of comparable properties in the area, neighborhood overview, and a summary of current real estate activity and market trends in the vicinity.

Myth: Appraisers are hired only to estimate real estate property values in property sales involving mortgage-lending transactions.
Reality: Appraisers, based on their qualifications and designations, offer a wide range of services beyond sales, including estate planning advice, dispute resolution, zoning reviews, tax assessment evaluations, and cost/benefit analyses.

Myth: An appraisal is the same as a home inspection.
Reality: An appraisal and a home inspection serve different purposes. The appraiser assesses the property’s value during the appraisal process and in the resulting report. In contrast, a home inspector evaluates the condition of the home and its major components, providing detailed findings on their state.